Bitcoin Forum

Hello everyone, I have some questions about something. My dad owns a gold mine but he's interested in making his own cryptocurrency that would be somehow be backed by his gold mine, but none of us know pretty much anything about cryptocurrency. My question is how would one go about tackling something like that, assuming it would be possible. And if it's not possible, why not? I'm pretty clueless on the matter so any help would be appreciated

Ask a xaurum dev :)

I think they deposit the gold bar inside vault guarded by an institute or probably a bank and those were all the tokens value. This is just what I assume though and so the tokens are distributed to all stake holders.

Research for it, and investigate..
Surely  u can find the answer for ur own question...
God luck and have a great day ahead.

It is possible with Ethereum and ERC20 tokens (https://theethereum.wiki/w/index.php/ERC20_Token_Standard).

Keep in mind that you are selling securities, so if you are in the U.S. or selling to U.S. investors, you will need to comply with SEC regulations. That will be the more difficult part.

As odolvlobo pointed out, an ERC20 token is probably your best bet (and pretty trivial to create)

The cool thing about ERC20 tokens, is that support for listing them on exchanges comes for free.

Pretty sure you need guidance. You need legal, tax, and accountant advisors. It's not quite easy to estructurate proccesses like these. But for sure this case is one of the great applications of Blockchain. Search about by "supply chain and blockchain" & "precious metals and blockchain"
see these links:
https://www.youtube.com/watch?v=Yuy4X16nNxg
https://news.bitcoin.com/orocrypt-ethereum-blockchain-meeting-precious-metals/
https://www.paxos.com/bankchain-precious-metals
https://www.azomining.com/Article.aspx?ArticleID=1367

Are you going to let other gold mines submit their gold somehow on the Blockchain too?

Cryptocurrency demands is still growing business and the whole crypto community is glad that you came here, bitcointalk is full of exciting information from bitcoin, altcoin and more,
I hope Crypto developers here will see it and give you enough information
For now read more, educate yourself and be vigilant.

Get a team managers to draft whitelist, hire bounty managers and expert in crypto currency to run a campaign to rasie funds to run the project.

The best advice - read, learn, keep your eyes open and stay vigilant.

Crypto world is full of opportunities, but, unfortunately, it's also full of scam.

Bitcointalk is a good place to start, for here you'll find info - and info is power.

It seems like you're not enough if it's just here, you need someone who's really good at handling your project directly and seriously. It is gold, even the company. It not only takes people who provide guidance, but is responsible for the risk of every action.

The mechanics of the actual currency aside, you should be putting some thought into why cryptocurrencies exist in the first place. It's to avoid a centralised point of failure which is exactly what a gold deposit would be.

If you get some legal heat, and there are lord knows how many regulations out there you could unknowingly trip, that gold becomes the vulnerability.

thank you all for your replies. my father's mine is in africa so i don't think SEC regulations apply there, i think. how feasible and doable is this entire project? he has all the resources to fund this project, but he would like to know if it's really worth it.

That would be a cool idea imo, but i think getting people to trust such an "ICO" might be a tad difficult. If  you pursue something like that I think your first priority will need to be proving legitimacy of the asset backing the token.

Unfortunately the amount of scammy ERC20 coins is just insane, which is kind of a sad thing.

I mean sure, the ledger would "prove" you own some gold, but the blockchain wont be giving people 24/7 CCTV footage that its still there in one piece if you know what i mean.
From a technical perspective I know there are websites where you can just next next finish it and create an ERC20 coin. Its quite easy, but onboarding an experienced blockchain programmer for such a venture would still be a good idea.

Its a cool idea mate, if there was some way I could know its trustworthy I would jump into things like that, unfortunately the number of dishonest people have made us all paranoid here lol.

Go google around, its definitely a cool idea.

If any American comes within a million miles of it it suddenly does become SEC business and international life suddenly becomes very difficult. That's why so many crypto services exclude Americans from everything.

my dad's not american

I'm sure he isn't.

What I'm referring to is buyers or customers. If any American is permitted into an ICO or similar that you run then the SEC or someone similar will start to meddle. It doesn't matter where you are in the world. There are plenty of foreign exchanges and ICOs that won't let an American anywhere near them because of that.